The combination is expected to expand New Age Beverages’ healthy beverages portfolio. More than $10 million of potential cost and revenue synergies have been identified and are expected to be gained over the next 12 to 18 months.
After the initial cheer, New Age Beverages experience a hangover
The Utah-based Morinda’s business is primarily a monthly subscriber-based model, fulfilled by a worldwide manufacturing and distribution network that includes owned and outsourced production in the US, Germany, Tahiti, Japan and China. More than 70% of its business is generated in the key Asia Pacific markets of Japan, China, Korea, Taiwan, and Indonesia.
In Q3 earnings conference call, the company had stated that working capital will be used in the future on its core business and CBD and health sciences businesses, and for targeted external growth opportunities like alliances or acquisitions.
New Age Beverages will conduct a conference call on Tuesday at 8:30 am ET to discuss further about this transaction.
New Age stock has surged about 125% and it has been trading in the range of $1.30 to $9.99 in the past one year.